Hi everyone,
Have been in America for 4 weeks and glad to be back. Let me put everyone in the picture. Over the past 9 years due to previous management the deal with the bank for the Sengkang power station was that all revenue would go to debt repayments and any left over to a trust account that will pay for the expansion.
That is why we have recieved bugger all from Sengkang. In fact it generates about US$30m/yr. By my rough calculations the debt is now about US$59m and the trust account US$110m. As you can see we are well into the black. With expansion cost about US$45m we will have about US$65m left in the trust account. This is in fact more than the debt left on Sengkang but with Sengkang after expansion generating about US$45m then it would be very prudent to still have debt on Sengkang so we should refinance but not with the mob who screwed us over this deal in the first place.
Obviously with US$48m($3m from Australia) in revenue the outstanding debt to the SCB of about US$75m will be chicken feed. There is also our cash position of about US62m after the placement of shares and options. We can also refinance Sengkang to raise even more cash. I think EWC could have about US$300m at its disposal to advance all the projects it is working on in Indonesia, India, Phillipines, and China. The company is almost fast approaching blue chip material.
Anyway that should get everyone up to date and to understand why the share price is so solid. Do with this knowledge what you want.
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